Control, sustainability, and risk: A structural perspective within financial decision systems

This study investigates the structural role of Financial Planning and Control (FPC) in shaping firms’ Investment and Risk Management (IRM) practices, while examining the mediating influence of Financial Sustainability (FS) within integrated financial decision systems. Using survey data from 200 firms operating across commercial, manufacturing, and service sectors in Kosovo (2024–2025), the study employs exploratory and confirmatory factor analyses and structural equation modeling. The results reveal that Financial Planning and Control exerts a strong direct effect on Investment and Risk Management and a significant positive effect on Financial Sustainability. Financial Sustainability, in turn, positively influences IRM outcomes and partially mediates the relationship between planning and control and investment–risk practices. These findings indicate that financial sustainability functions as an endogenous structural mechanism through which internal control systems translate into more effective investment and risk decisions. The measurement and structural models demonstrate excellent reliability, validity, and overall fit. By advancing a system-level perspective on financial decision-making, this study contributes to the financial management and risk literature and highlights the strategic importance of aligning planning, sustainability, and risk management to enhance financial resilience and investment quality, particularly in volatile and resource-constrained environments.